As organisations place greater emphasis on social value, procurement is becoming an increasingly important tool for creating economic and community impact. Umesh Kumar, Head of Venture Support at Allia Impact, explores why social value should be about more than navigating tender requirements.
Social value starts with decisions about buying things. Indeed, social value is now firmly embedded within procurement conversations. Public sector bodies, local authorities and large organisations are increasingly recognising that their purchasing decisions can influence employment, community resilience, sustainability and local economic growth.
That is undoubtedly positive progress. However, there is a risk that social value becomes something organisations talk about rather than something they actively create. Too often, it is treated as a scoring exercise within a tender process rather than a consideration that shapes procurement decisions from the outset.
At Allia Impact, we work with founders and mission-led businesses tackling issues such as employment, digital inclusion, health, climate and community resilience. Many of these organisations are already delivering the kind of outcomes buyers say they want to support. Their social value is not something added on after the fact. It is built into the work they do every day.
The challenge is that many of these businesses still struggle to access procurement opportunities.
Opening the door to mission-led businesses
We regularly meet founders with strong products, clear impact and deep community knowledge who find public procurement difficult to navigate. They may be unfamiliar with procurement language, lack the track record larger contracts demand or simply be too small to compete for opportunities designed around larger suppliers.
This matters because procurement is one of the most powerful economic tools available to most organisations. Every contract awarded is a decision about who gets the opportunity to grow. Every supplier relationship contributes to shaping the type of economy we create. If organisations are serious about social value, they need to think carefully about whether procurement processes are helping mission-led businesses access opportunities or unintentionally keeping them out.
Recent procurement reforms have created a more positive environment for SMEs and VCSEs to compete for public sector contracts. That is welcome. But legislation alone will not change outcomes.
Real change happens when buyers engage suppliers earlier, simplify processes where possible, use clearer language and create opportunities that smaller organisations can realistically access.
Moving beyond the tender document
For many years, social value has often been treated as something added at the end of a procurement process. A supplier wins a contract, commits to volunteering activities, apprenticeships or community initiatives, and social value is considered addressed.
But the more important question is much simpler: who are we buying from?
Mission-led businesses and social enterprises frequently create social value through their core activity. They create jobs, support underrepresented communities, tackle environmental challenges and address local needs through the products and services they provide.
Choosing to work with these organisations can generate impact long before a contract has even begun. This requires a shift in mindset.
Social value should not be viewed solely as a commitment suppliers make. It should also be reflected in the decisions buyers take.
Building a stronger economy through procurement
If we want a stronger and more inclusive economy, procurement has an important role to play. That means creating opportunities for organisations already delivering positive impact. It means making procurement more accessible. And it means recognising that social value is not simply something that appears in a tender response.
It is created through the businesses we support, the suppliers we choose and the opportunities we open. The organisations we buy from matter just as much as the promises they make.
If we get that right, procurement can become far more than an administrative process. It can become a powerful tool for helping mission-led businesses start, grow and scale while creating lasting value for communities across the UK.